• Last Updated:
  • Nov 1st, 2017 11:50 pm
[OP]
Deal Addict
May 7, 2006
1803 posts
22 upvotes

Selling investment property

We have a small mixed residential commercial building we are planning to sell. What happens to the commercial lease when it gets sold to the new buyer?
2 replies
Deal Addict
Oct 6, 2015
1300 posts
684 upvotes
Depends on the lease. Some lease obligations are structured in ways that they form a charge against the building itself, and would be transferred with the building. In other instances, the lease becomes remains an obligation of the seller, and the seller may have to pay damages if the new buyer terminates the tenancy.

You'd want to discuss this with the RE agent and/or lawyer involved with the transaction. A renter may have considerable rights which survive the sale, which may give rise to damages against the seller.

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